Because of government restrictions to curb the spread of the Covid-19, business operations around the world have been hindered or halted. Innovation and research activities are often the first to be in danger during an economic crisis. Being extra reliant on innovation and research, this means that many start-ups and SMEs are more vulnerable than larger industries, especially in tech domains.
The Covid-19 crisis also had an influence on the space industry, even though demand for downstream space applications has skyrocketed during the pandemic, helping many projects to stay afloat and opening up new options for the utilisation of space. Governments also jumped to the rescue, providing much needed support to the space sector.
The pandemic has made evident how important government backing is for expanding commercial space firms, particularly small ones that rely largely on their governments as investors in new ventures and regulators of their operations. As a result, cautious government intervention is critical for weathering crises and recouping lost earnings as a result of the pandemic.
A new paper, published in the Aviation and Space Journal by our Junior Consultant Miraslava Kazlouskaya examines the influence of the 2020-2021 coronavirus pandemic on the financing of space operations, changes in supply and demand in this sector, as well as force majeure and bankruptcy cases. The paper also describes how the space sector has been able to gain a second wind during that difficult phase, with a look at policies in the United States, Russia, the United Kingdom, and the European Union.
After careful analysis, and tips for governments and the space sector, the paper ends on a very positive note for the future: “While the space industry has encountered significant obstacles, with well-designed national regulations and pandemic-sensitive contracts, the sector stands a good chance of the post-coronavirus thriving.”